SP Angel . Morning View . Monday 22 11 21


Copper and nickel lead gains as oil prices pull back on Covid in Europe




Atome Energy Plc plans to produce green hydrogen and ammonia from its projects that access renewable energy from hydropower and geothermal sources


The company is planning to list on the AIM market – www.atomeplc.com


Investors may apply through their investment managers.




Altus Strategies* (Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF)) – Portfolio of Moroccan exploration assets vended into Eastinco


Atlantic Lithium* (Atlantic Lithium Limited (AIM:ALL)) / IronRidge Resources* (IRR LN) – Change of name to Atlantic Lithium


Aura Energy* (Aura Energy Ltd (ASX:AEE, AIM:AURA)) – Realignment of the board in preparation for development of the of Tiris uranium project


BlueRock Diamonds* (Bluerock Diamonds PLC (AIM:BRD)) – BlueRock lifts diamond sorting pans into new process plant


Castillo Copper (Castillo Copper Ltd (LSE:CCZ, ASX:CCZ)) – Progress report on the Picasso lithium project


Hochschild (Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF)) – Shares fall 52% as Peruvian government plans to close mines


Kavango Resources (Kavango Resources PLC (LSE:KAV, OTC:KVGOF)) – Drilling commences at highly conductive geophysical anomaly


Power Metal Resources* (Power Metal Resources PLC (AIM:POW)) – Highly prospective uranium-REE project acquired


Rambler Metals and Mining* (Rambler Metals and Mining PLC (AIM:RMM, TSX-V:RAB)) – Ming mine future taking shape after a transformational 2021


Shanta Gold (Shanta Gold Limited (AIM:SHG, OTC:SAAGF)) – New Luika Q3/21 drillling results point to a further LOM extension


Vulcan Energy (Vulcan Energy Resources (ASX:VUL)) – Vulcan inks 2nd deal with Renault for lithium supply




VOX Markets: 20/11/21: https://audioboom.com/posts/7983106-john-meyer-discusses-inflation-covid-china-slowing-plus-afritin-cornish-metals-ironridge-ra


IGTV: Cornish Metals*, Mkango *, Kodal * – Fed to consider potential China slowdown when looking at rates https://youtu.be/FjIMHHXKzXg


*SP Angel almost invariably acts as nomad or broker or nomad and broker to companies mentioned in the above videos and podcasts.


We speak more about these companies as we have a good understanding of their business and can talk with a greater degree of confidence. As ever, however, it should be noted that our views do not take into account the circumstances and needs of any particular investor or investor type. So enjoy the talks, but please do your own research, including other companies not mentioned by us but operating in the same areas, and get professional advice where appropriate.




Dow Jones Industrials -0.75% at 35,602


Nikkei 225 +0.09% at 29,774


HK Hang Seng -0.32% at 24,970


Shanghai Composite +0.61% at 3,582




Economics


China land sales fall for 4th consecutive month on faltering property sector


Chinese government revenue from land sales in Oct. fell 13% to $90bn – had fallen 11% in Sept. (Reuters)


Moody’s expect the slide in revenue to hit infrastructure funding and causing ‘local governments to temporarily shift to debt-funded growth’.


Private developers bought c. 140bn yuan of land in a recent auction, down 75% from an auction round March-June.




Peruvian Prime Minister triggers concern in mining sector with extension comments


Peru’s PM Vasquez has stated that 4 mines in the Andean Ayucho region would not be granted extensions on their operational timelines. (Reuters)


Vasquez stated the government ‘will close the mines as soon as possible’.


Hochschild own 2 of the projects.


President Castillo’s election in July has triggered a number of community protests, with the mining sector criticising the administration for ‘enabling’ the protests.




Signs of supply-chain crisis easing, labour shortages expected through 2022


Major US retailers have stated they have imported most of their holiday supplies. (WSJ)


Container rates across the Pacific fell 25% last week – biggest decline in 2 years.


Logjams at key ports inc. LA, Long Beach, aren’t expected to ease for months. (Vespucci Maritime)


71 container ships anchored on Nov. 19 – down from peak of 86 on Nov. 17th. (Marine Exchange of Southern California) – Pre-pandemic was rare for any offshore waiting.


500 large container ships waiting to dock in North America, Asia, and Europe as of Friday – 497 on Oct. 8. (eeSea)


Oxford Economics expect supply-chain disruptions to have peaked this quarter.


Production limits have eased in Malaysia and Vietnam as Covid-related factory restrictions have eased.


Manufacturing capacity is returning to normal levels according to Guangdong factory owners (WSJ).




Congo president hopes to fight fraud with audit of mining registry


DRC President Tshisekedi is looking to ban the issuance and trading of mining permits until a country-wide audit has been completed.


The mining register records concessions and an audit will enable a crackdown on corruption from officials and political actors. (Reuters has seen the meeting minutes)


Tshisekedi is currently reviewing ex-president J. Kabila’s $6bn ‘infrastructure-for-minerals’ deal with Chinese investors.


Mining Minister N’Samba has been ordered to highlight companies who’ve avoided providing the state with 10% of shares.




Currencies


US$1.1277/eur vs 1.1340/eur last week. Yen 114.15/$ vs 114.36/$. SAr 15.731/$ vs 15.606/$. $1.343/gbp vs $1.349/gbp. 0.725/aud vs 0.728/aud. CNY 6.380/$ vs 6.384/$.




Commodity News


Precious metals:


Gold US$1,847/oz vs US$1,858/oz last week


Gold ETFs 98.2moz vs US$97.9moz last week


Platinum US$1,043/oz vs US$1,055/oz last week


Palladium US$2,073/oz vs US$2,141/oz last week


Silver US$24.88/oz vs US$24.82/oz last week


Rhodium US$14,350/oz vs US$14,350/oz last week




Base metals:


Copper US$ 9,666/t vs US$9,645/t last week – SHFE copper stocks fell 8.2% to 35,000t last week with copper stocks also falling 10.4% on the week


Aluminium US$ 2,687/t vs US$2,683/t last week


Nickel US$ 20,145/t vs US$19,935/t last week


Zinc US$ 3,245/t vs US$3,192/t last week – LZSG sees a 44,000t deficit in September vs 14,000t in August


Lead US$ 2,235/t vs US$2,228/t last week


Tin US$ 38,400/t vs US$38,870/t last week




Energy:


Oil US$79.1/bbl vs US$82.0/bbl last week


Natural Gas US$4.886/mmbtu vs US$4.977/mmbtu last week


Uranium UXC US$47.6/lb vs $48.1/lb last week – Gates to build $4bn 345MW nuclear test plant in Wyoming


TerraPower will build its Natrium plant in Kemmerer.


The US Federal government will fund ~$1.9bn including $1.5bn from the recent infrastructure bill.


Biden’s infrastructure bill sets aside $2.5bn for advanced nuclear reactors.




Bulk:


Iron ore 62% Fe spot (cfr Tianjin) US$91.9/t vs US$86.2/t


Chinese steel rebar 25mm US$737.7/t vs US$730.6/t


Thermal coal (1st year forward cif ARA) US$113.8/t vs US$111.5/t – China’s coal futures continue descent as state planner announces output stabilisation


China thermal coal futures down 60% since mid-October.


Prices down from 2,000y/t to 800y/t ($125) today.


The NDRC stated yesterday that China’s daily coal output has stabilised at 12mt.


Stocks at power plants hit 129mt – expected to hit 140mt by November end.


The state planner pointed to ‘energy price’ falling ‘significantly lately’.




Thermal coal swap Australia FOB US$158.0/t vs US$156.0/t


Coking coal swap Australia FOB US$290.0/t vs US$311.0/t




Other:


Cobalt LME 3m US$61,550/t vs US$61,550/t


NdPr Rare Earth Oxide (China) US$122,659/t vs US$122,574/t


Lithium carbonate 99% (China) US$28,607/t vs US$28,274/t


China Spodumene Li2O 5%min CIF US$2,160/t vs US$2,110/t


Ferro-Manganese European Mn78% min US$1,945/t vs US$1,990/t


China Tungsten APT 88.5% FOB US$313/t vs US$313/t


China Graphite Flake -194 FOB US$665/t vs US$665/t


Europe Vanadium Pentoxide 98% 7.6/lb vs US$7.5/lb


Europe Ferro-Vanadium 80% 31.95/kg vs US$31.75/kg


China Ilmenite Concentrate TiO2 US$388/t vs US$388/t


Spot CO2 Emissions EUA Price US$74.4/t vs US$74.8/t




Battery News


Green Hydrogen for Scotland Consortium secures UK government funding


The Green Hydrogen for Scotland Consortium has secured funding through the Energy Innovation Portfolio competition run by the UK government.


The project will receive GBP9.4m of funding which will support Phase 1 of development for ScottishPower’s 20MW Whitelee Windfarm hydrogen production and storage facility.


The funding will support a 10MW electrolyser and 4t of hydrogen storage.


The project is designed to provide carbon-free transport and clean air for communities across Glasgow – the city is aiming to become the first net-zero city in the UK by 2030.




Toyota planning to invest billions in US battery plant


Toyota are considering investing billions of USD in a US battery plant, in North Carolina, as they look to increase the output of EVs in the US.


There have been no concrete decisions made, but the automaker is expected to partner with Panasonic.


The plans are still very early stage and not much is known about potential ownership and operation, but it is likely that the companies’ JV, Prime Energy & Solutions will operate the facility, if plans go ahead.


The North Carolina plant would be the latest in a string of announcements by major automakers in the US – Ford and South Korea’s SK Innovation announced in September they will spend around $11.4 billion on an EV assembly plant and three battery factories in Tennessee and Kentucky.




Company News


Altus Strategies* (Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF)) 70p, Mkt Cap GBP56m – Portfolio of Moroccan exploration assets vended into Eastinco


BUY


The Company signed a sale and purchase agreement with Eastinco Mining and Exploration with regards to the 100% owned Aterian Resources holding a portfolio of 15 copper/silver exploration projects in Morocco.


Eastinco is currently listed on London AQSE Growth Market (1.3p, Mkt Cap GBP6.0m) and owns a portfolio of tantalum exploration and development projects in Rwanda.


Altus will vend in its portfolio of Moroccan assets into Eastinco in exchange for


25% interest in enlarged Eastinco share capital


Warrants for up to an additional 10% of Eastinco


Altus will be granted varying royalties on 15 licenses held by Aterian including a royalty on Musasa tantalum mine in Rwanda.


Eastinco will have an option to reduce the NSR royalty percentage on separate licenses in exchanged for a cash payment ($500k-$1,000k);


A GBP250k payment to reimburse Altus for exploration expenditures incurred by Aterian in 2021.


The deal is subject to a number of conditions including the admission of Eastinco to trading on the LSE Main Market.


The admission and transaction will be voted on by Eastinco shareholders at the coming Eastinco’s General Meeting.


Eastinco raised GBP950k recently as pre-IPO funding comprised of GBP100k worth in new shares (at 1.5p) and an interest free convertible loan notes (convertible at 1.5p) for the remaining GBP850k that will be converted into Eastinco Shares upon Admission.


The proceeds will be used to pay for Admission, exploration costs, refund Altus for agreed exploration expenditures and for general working capital purposes.


Upon listing Eastinco is expected to change its name to Aterian Plc.


Altus’ shares will be subject to a 12-months lock up followed by a further 12-months orderly market provision.


Altus will be entitled to a seat on the Board of Eastinco as long as it holds 10% or more in Eastinco.


Conclusion: The transaction reflects the business model to monetise exploration discoveries with Altus vending a portfolio of prospective Moroccan copper/silver assets in return for an equity exposure in Eastinco as well as a series of NSR royalties on existing and potential new licenses. Eastinco has just closed the ~GBP1m funding to close the transaction as well as cover exploration programme at expanded portfolio of assets.


*SP Angel acts as Nomad and Broker to Altus Strategies




Atlantic Lithium* (Atlantic Lithium Limited (AIM:ALL)) / IronRidge Resources* (IRR LN) 24p, Mkt cap GBP136m – Change of name to Atlantic Lithium


IronRidge reports that the Australian Securities and Investments Commission has approved the Company’s change of name to Atlantic Lithium Limited (AIM:ALL).


From 8.00 a.m. today, Monday 22 November 2021 the Company will trade under the new name of Atlantic Lithium Limited with a new ticker ALL.


*SP Angel acts as Nomad to Atlantic Lithium




Aura Energy* (Aura Energy Ltd (ASX:AEE, AIM:AURA)) 14.5p, Mkt Cap GBP58m – Realignment of the board in preparation for development of the of Tiris uranium project


Aura Energy reports that it is planning changes to its board in preparation for the development of its Tiris project in Mauritania and the commencement of uranium production.


The company plans the election of former Rio Tinto, Anglo American and High Power Exploration (owned by Robert Friedland) executive, Phil Mitchell, as non-executive Chairman at its 2021 AGM on 21st December.


Mr Mitchell is described as a former “Head of Business Development and Strategy at Rio Tinto” and formerly “the Chief Financial Officer of Rio Tinto’s iron ore business” who “Most recently… lead the acquisition of the Nimba Iron Ore project for Robert Friedland’s High Power Exploration (HPX) including the purchase arrangements with BHP, Newmont and Orano, and the negotiation of the agreements with the Governments of Guinea and Liberia”.


In addition, “Warren Mundine to be elected at the AGM as Independent Non-Executive Director. Mr Mundine is one of Australia’s prominent independent thinkers and a thought leader in the mining sector and nuclear power space as former director of the Australian Uranium Association” and “Mr. Bryan Dixon to be elected at the AGM as Independent Non-Executive Director, contributing significant experience as a Chartered Accountant building junior exploration companies into producers, with over 20 years in the mining sector”.


Completing the transition, the current MD and CEO of Aura Energy, Peter Reeve, is to become the CEO of Aura Energy’s wholly-owned gold exploration subsidiary, Archaean Greenstone Gold in order to “drive a proposed spin-out and listing process of Archaean on the ASX in 2022 with a planned in-species distribution to Aura shareholders”.


Commenting on the “strategic changes to focus on uranium”, current Chairman, Martin Rogers, said that the “new proposed Board of directors, have been strategically chosen with a strong focus on production. With their extensive industry experience and contacts, by entering further offtake and financing agreements, the Company will be able to commence production at Tiris in the near term, thereby creating further value for Aura shareholders, as the Company continues to capitalise on the rapidly growing demand for nuclear”.


He also acknowledged Peter Reeve and his team “for shepherding the project through tough times in the uranium bear market” and said that Mr. Reeve will now be “applying his strong abilities in advancing exploration at the highly prospective Tasiast South Gold Project, which is 36 km south of Kinross 20 Moz Tasiast Gold Mine”.


Conclusion: Aura Energy is to re-align its Board through the appointment of non-executive directors with appropriate operational and uranium industry expertise as it focusses on developing the Tiris uranium project in Mauritania and bringing the project to production.


*SP Angel acts as Nomad and Broker to Aura Energy




BlueRock Diamonds* (Bluerock Diamonds PLC (AIM:BRD)) – 33.00p, Mkt cap GBP4.7m – BlueRock lifts diamond sorting pans into new process plant


BlueRock report the transfer and fitting of two diamond sorting pans from the old process plant into the second line of their new facilities.


In the meantime, Line 1 of the new plant is operating at near design capacity using feedstock which was built up ahead of the rainy season in Kimberley, South Africa.


Activity at the Kareevlei mine remains suspended following the Section 54 health & safety notice from the DMRE.


Management hopes to resolve any potential outstanding safety issues in the near future.


While we suspect the DMRE is taking a cautious approach to safety issues at the mine we do agree that safety is a very necessary priority at any and all mines.


The crushing circuit and line 1 of the new plant are working at near design capacity. Line 2 should be operational within two weeks.


Management have revised their guidance to the lower end of the 22,000-26,000cts production for the full year.


There is no diamond tender in Kimberley in December and management are likely to finance their working capital needs through Delgatto Diamond Finance.


We hope the Section 54 notice is lifted soon so the mine can rebuild feedstock ahead of the December/January rainy season in the Kimberley area.


We now expect the company to produce some 5,680cts in Q4 to give a total value of $10.5m for the year.


Sales are likely to be closer to $9m than $10m by our reckoning due to the absence of the December diamond tender.


*SP Angel act as nomad and broker to BlueRock Diamonds




Castillo Copper (Castillo Copper Ltd (LSE:CCZ, ASX:CCZ)) 2.1p, Mkt Cap GBP26.3m – Progress report on the Picasso lithium project


Castillo Copper has issued a progress report on its’ due-diligence on the Picasso and Litchfield lithium project in Western Australia saying that its geological team has mapped a potentially lithium bearing pegmatite extending for around km in the north-eastern part of the licence which the company describes as a significantly larger area than that mapped by government agencies.


Managing Director, Simon Paull, said that “The Board’s preliminary conclusion, based on due diligence undertaken to date, is the Picasso Lithium Project is prospective for lithium mineralisation and delivers significant incremental exploration potential”.


The company says that the potential of these pegmatites to host lithium “is subject to further investigation” and also that “there is potential to discover further pegmatites across the tenure as there is significant shallow sand cover”.


Previous announcements on the work at the Picasso project said that the company was awaiting assay results from more than 650 surface samples but the absence of further news in today’s announcement suggests that the assays are still not yet available.




Hochschild (Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF)) 80.6p, Mkt cap GBP414m – Shares fall 52% as Peruvian government plans to close mines


Hochschild shares slumped in London on Monday morning after saying it has learned of a government attempt to close two of its silver mines in Peru following environmental complaints.


Various media outlets have reported in Peru that a government commission has been started to negotiate a timetable and terms of closure for two mines, Pallancata and Inmaculada.


The news follows general unrest in the country following the election won by Marxist Pedro Castillo who vowed to nationalise some mining assets.


Shares in Hochschild plummeted after Peruvian Prime Minister Irtha Vasquez said over the weekend that four mines in the southern Ayacucho region would be “closed as soon as possible”.


Hochschild commented: “Hochschild will vigorously defend its position and take all action necessary to ensure that the rights of the company and its wholly-owned subsidiaries under Peruvian and international law are respected”


The mining industry accounts for 60% of export revenue in Peru, while Hochschild employs 5,000 people in Peru and says that its mines support a further 40,000 jobs.




Kavango Resources (Kavango Resources PLC (LSE:KAV, OTC:KVGOF)) 4.8p, Mkt cap GBP18.7m – Drilling commences at highly conductive geophysical anomaly


Kavango reports that it has commenced drilling at its B1 Conductor Target, with Hole KSZDD002 expected to be drilled to a depth of 650m.


The B1 Conductor is a cross-formational, strongly conductive geophysical anomaly that has a conductance reading of 8,200 Siemens.


According to the company’s model, the B1 Conductor is 475m by 550m in size, exhibits a decay constant in excess of 350ms and dips at a 60-degree angle.


The B1 conductor was identified through two surface Time Domain Electromagnetic surveys performed by Spectral Geophysics in Q2 this year.


Kavango comment that the B1 Conductor could be correlated to the local Karoo gabbro intrusive, as well as the “great Red Spot” magnetic anomaly.


Kavango’s updated inversion model of the Company’s aeromagnetic data indicates that the 60-degree dip of the B1 Conductor is aligned directly towards one of flanks of the magnetic high of the underlying Great Red Spot.


Kavango comments that the Great Red Spot area gas the potential to host two separate mineralised systems, one younger Karoo-age system (prospective for Ni/Cu/PGEs), and another older Proterozoic-age system.


The cost of Drill Hole KSZDD002 has already been paid, with the balance to be paid in stock. The Company’s working capital position is GBP2.1m.


Conclusion: Kavango believes the position, size, shape, orientation and conductance of the B1 Conductor suggest this target may have the potential to be a large-scale, Karoo-age nickel/copper/platinum group element (Ni/Cu/PGE) mineralisation.




Power Metal Resources* (Power Metal Resources PLC (AIM:POW)) 1.75p, Mkt Cap GBP23.5m – Highly prospective uranium-REE project acquired


Power Metal reports that it has signed an agreement to acquire 100% of the Selta Project in the Northern Territory, Australia.


The Acquisition will be undertaken by Power Metal subsidiary, First Development Resources Limited, in an all-FDR share transaction to acquire a 100% interest in URE Metals, a private Australian company which wholly-owns the Selta Project.


The Northern Territory hosts some of Australia’s best known and high-grade U and REE deposits, including Arafura Resources’ Nolans Bore REE deposit – which is located less than 70km away from the Selta Project.


The Project comprises three exploration licence applications covering a total land area of 1,574.92km2.


Previous sampling on the project has identified elevated uranium results up to 3.8ppm Uranium in soil samples, stream sediment samples up to 27.2ppm U and rock chip samples up to 244ppm U.


Assayed whole rock grab samples from the Selta Project have yielded highly anomalous rare-earth element mineralisation including 93ppm neodymium and 25ppm praseodymium.


FDR will acquire a 100% interest in URE for initial consideration of up to AUD$25,000 payable by 1/12/2021 to cover historic expenses and GBP100,000 payable through the issue of 1,499,250 FDR shares of one pence each in FDR at a price of 6.67p each.


Additional consideration will be due as each of the three licence applications are granted, with an additional amount payable of GBP400,000 should all licences be granted, again payable through the issue of FDR shares.


FDR is planning to list on the London capital markets in Q1 2022 and is currently in late stage discussions to further expand its project portfolio in preparation for listing.


*SP Angel act as Nomad and Broker to Power Metal




Rambler Metals and Mining*+ (Rambler Metals and Mining PLC (AIM:RMM, TSX-V:RAB)) 38p, Mkt cap GBP50m -Ming mine future taking shape after a transformational 2021


(Rambler owns 100% of the Ming Copper-Gold Mine)


In a well-attended conference call to investors and other interested parties last week, Rambler Metals and Mining provided insights into its plans for the rejuvenation of the Ming mine and progress on its turnaround plan.


Management explained a historical background of limited exploration, underdevelopment of the mine’s production capacity and infrastructure and limited maintenance linked to financial constraints on investment on a mine, developed in 2010 with a projected 6 year mine life at a production rate of 600tpd and discussed its future strategy to ramp up to 1,350tpd matching the current plant capacity over a mine life currently estimated on internal projections at 20 years.


Monthly production data published earlier this month shows daily rates increasing from the equivalent of 472tpd in June 2021 to 806tpd in October, a period which, we note, is largely prior to the recent financial restructuring, and suggestive of progress which should be capable of further acceleration with the injection of the new funds.


Describing 2021 as a transformational year, management stressed the consistency of its plans with previous announcements describing a fully permitted mine and plant with a large and growing resource base and favourable and well-understood metallurgical characteristics.


Previous mining constraints limited access to more than one mining production area and Rambler Mines explains that although only one stope is necessary to deliver the targeted tonnage, the availability of two stoping areas, one in the larger, Lower Footwall Zone and one in the higher grade massive sulphide ore offers blending opportunities while the availability of 4 stoping areas provides important risk mitigation in the event of unforeseen issues arising.


Rambler Mines also discusses potential the cost saving and operating simplification offered by alterations to mining methods in some areas and particularly mentioned the improved geotechnical conditions and greater orebody extraction opportunities offered by a transition to cut-and-fill mining in higher grade massive sulphide mineralisation.


In discussing the scale and quality of the mineral resources at the Ming mine, management explained that the results of the recent drilling programme were to be incorporated in a revision to the mineral resources estimate early in 2022.


We have noted in the past that previous resource estimates have more than replaced the tonnes mined and delivered additional resources at higher grades than those consumed. In the light of individual results reported in recent announcements, we expect a similar outcome when the latest drilling is incorporated in a new estimate.


The company also discusses the impact of possible adjustments to resource cut-off-grades which, in the context of current robust copper prices and the potential cost savings of the mine redevelopment plan, may well be applicable in a forthcoming estimate.


The company explains that “For mine planning purposes, the copper cut-off grade for the LFZ is ~1.5%, targeting a mineral resource of 9M tonnes @ 2.04% copper for 180,000 tonnes Cu” and confirms that “At a 1.2% copper cut-off the available tonnage for planning increases to 15M tonnes @ 1.76 % Cu for 262,000 tonnes Cu” representing a 45% increase in contained metal content.


Considering future value enhancement opportunities in addition to optimisation at the Ming mine, the company discusses the cost reduction, revenue enhancement and environmental benefits of its ore-sorting plans which are currently the subject of a feasibility assessment, as well as the environmental, cost and mining benefits of using tailings for backfill underground and the possibility of implementing ore hoisting as a means of increasing output and reducing operating costs


Rambler Metals also discusses the potential transport cost savings of over US$5m pa which arise from a potential relocation of the processing facility, currently located 40km away at Nugget Pond and says that “With a 20-year LOM there is an opportunity to eliminate this cost with a mill adjacent to the mine site”.


Rambler Metals also discussed the attributes of its wholly-owned Little Deer deposit which hosts an indicated resource of 2.9mt at an average grade of 2.13% copper and an inferred resource of 6.2mt at an average grade of 1.79% copper which could be developed as a future addition to the project portfolio


Conclusion: Rambler Mines has presented a positive record of achievement and progress with its turnaround of the Ming mine in Newfoundland where it is building on recent progress towards its 1,350tpd ore production and processing target to deliver its key indicators and a mine with a 20 year life. We look forward to the forthcoming mineral resource estimate which should incorporate the recent wide and high-grade intersections from the infill drilling programme and which we expect to provide a mineral resource platform for the current changes and a long-life mining operation.


*SP Angel act as Nomad and broker to Rambler Metals & Mining.




Shanta Gold (Shanta Gold Limited (AIM:SHG, OTC:SAAGF)) 12.3p, Mkt Cap GBP128m – New Luika Q3/21 drillling results point to a further LOM extension


The Company released assays for DD and RC drilling completed in Q3/21 at the New Luika Gold Mine.


The Company completed ~4,500m of DD and RC drilling at Bauhinia Creek Main, Bauhinia Creek East Area 1, and Luika.


Selected intersections included:


3.05 m @ 15.17 g/t Au from 110.20 m including 1.23 m at 36.29 g/t Au (CSD294; BC Main)


10.56 m @ 22.67 g/t Au from 98.00m including 4.30 m at 51.65 g/t Au (CSD251; BC East Area 1)


4.88 m @ 4.72 g/t Au from 529.20 m including 2.12 m at 8.07 g/t Au (CSD227; Luika)


5.44 m @ 5.84 g/t Au from 539.92 m including 1.16 m at 17.88 g/t Au (CSD269; Luika)


Additionally, the Company completed ~3,700m of RC drilling at Porcupine South in Q3/21 infill drilling a strike length of 600m.


Porcupine South is located around 22km to the east of the processing plant hosting total JORC compliant resource of 962kt at 2.08g/t for 64koz.


Selected intersections include:


8 m @ 2.60 g/t Au from 53 m including 1 m @ 5.02 g/t Au and 3 m at 4.23 g/t Au (PSRC049)


7 m @ 2.38 g/t Au from 53 m including 2 m at 4.75 g/t Au (PSRC066)


10 m @ 2.26 g/t Au from 53 m including 4 m at 4.07 g/t Au (PSRC051)


13 m @ 3.01 g/t Au from 167 m including 5 m at 5.06 g/t Au (PSRC088)


9 m @ 2.46 g/t Au from 58m including 3 m at 5.63 g/t Au (PSRC089)


7 m @ 2.25 g/t Au from 93 m including 3 m at 4.49 g/t Au (PSRC090)


All drilling results relate to areas outside existing mineral reserves and are expected to be included in the next update of the mine plan extending life of NLGM.


A reserve and resource update for New Luika is targeted for Q1/22 extending the LOM of the operation past current 2026.




Vulcan Energy (Vulcan Energy Resources (ASX:VUL)) A$10.90, Mkt cap A$1.35bn – Vulcan inks 2nd deal with Renault for lithium supply


Renault will purchase 26-32kt of battery-grade lithium from Vulcan for a 6-year period. (Reuters)


Vulcan and Renault’s second agreement will start commercial delivery in 2026.


The 1st agreement in August was for 6-17kt of lithium pa to Renault from Vulcan’s geothermal brine deposits.


Vulcan has raised concerns over local municipalities in Germany and has sought time to ‘reengage with stakeholders’.




No.1 in Copper: “The winner of the 2020 Fastmarkets Apex contest for copper was the team at SP Angel comprising John Meyer, Sergey Raevskiy and Simon Beardsmore, with an accuracy score of 93.8%”


No1. In Gold: “SP Angel’s trio took the top spot for the gold price prediction throughout the year, with an accuracy score of 97.59%”


The SP Angel team also ranked 1st in Palladium, 3rd in Tin and 5th in Silver in the fourth quarter of 2020




Analysts


John Meyer – John.Meye[email protected] – 0203 470 0490


Simon Beardsmore – [email protected] – 0203 470 0484


Sergey Raevskiy [email protected] – 0203 470 0474


Joe Rowbottom – [email protected] – 0203 470 0486




Sales


Richard Parlons [email protected] – 0203 470 0472


Abigail Wayne – [email protected] – 0203 470 0534


Rob Rees – [email protected] – 0203 470 0535


Grant Barker – [email protected] – 0203 470 0471






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35-39 Maddox Street London


W1S 2PP




*SP Angel are the No1 integrated nomad and broker by number of mining brokerage clients on AIM according to the AIM Advisers Ranking Guide (joint brokerships excluded)


+SP Angel employees may have previously held, or currently hold, shares in the companies mentioned in this note.




Sources of commodity prices


Gold, Platinum, Palladium, Silver


BGNL (Bloomberg Generic Composite rate, London)


Gold ETFs, Steel


Bloomberg


Copper, Aluminium, Nickel, Zinc, Lead, Tin, Cobalt


LME


Oil Brent


ICE


Natural Gas, Uranium, Iron Ore


NYMEX


Thermal Coal


Bloomberg OTC Composite


Coking Coal


SSY


RRE


Steelhome


Lithium Carbonate, Ferro Vanadium, Tungsten, Spodumene, Ferro-Manganese, Graphite


Asian Metal


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